HotStats: U.S. GOPPAR Slips for First Time in 2019

Decrease - GOPPAR

April was the first month of the year during which U.S. hotels reported a year-over-year (YOY) decline in profit per room, as a drop across all revenue centers was impacted by rising costs, according to the latest data tracking full-service hotels from HotStats. GOPPAR fell by 3.7 percent YOY to $118.51. Still, year-to-date profit per room remained positive at 1.6 percent YOY.

Profit & Loss Key Performance Indicators — U.S.
April 2019 vs. April 2018

RevPAR: -1.6% to $179.24
TRevPAR: -0.6% to $289.64
Payroll: +3.2% to $95.17
GOPPAR: -3.7% to $118.51

RevPAR dropped 1.6 percent YOY to $179.24, and both room occupancy and achieved average room rate were down 0.6 and 0.9 percent, respectively. This marked the first time U.S. hotels recorded a monthly YOY decline in achieved average room rate since September 2017.

Food and beverage (down 1.3 percent) and conference/banqueting (down 2.1 percent) revenue also experience YOY declines on a per-available-room basis.

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In line with the decline in rate, a 0.6 percent YOY decrease in TRevPAR to $289.64 signaled the end of a successful run of growth in this measure. TRevPAR has fallen only once since September 2017.

Payroll levels increased by 3.2 percent YOY to $95.17 on a per-available-room basis—equivalent to 32.9 percent of total revenue.

“The decline in profit is a blow since the last drop was recorded back in fall 2018,” said David Eisen, director of Hotel Intelligence and Customer Solutions, Americas, HotStats. “However, the hope is that it’s a blip and subsequent months will swing back to positive growth. But with RevPAR down for the month and only narrowly up year-to-date, coupled with an ongoing rise in costs, driving profitability becomes that much more challenging.”

 


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